OCBC pilots increased green finance framework for SMEs

SMEs will no longer need to develop frameworks prior to applying.

OCBC has launched a framework that would grant an increased sustainable financing of up to $20m for SMEs, a statement read.

The OCBC SME Sustainable Framework is for SMEs that are involved in sustainable activities across eight green project categories eligible under the Green Loan Principles by the Loan Market Association. They will no longer be required to develop frameworks prior to applying for sustainable financing, to show that the proceeds will be deployed in accordance with internationally recognised green standards.

The new framework is also applicable to projects in these eight categories that do not have internationally or nationally recognised sustainable certification schemes established.

The financing can be in the form of solutions such as green loans, green letters of credit and green banker’s guarantee. The framework was supported through the Monetary Authority of Singapore’s Green and Sustainability-Linked Loan Grant Scheme.